Answer:
c. 151,955
Explanation:
Calculation to determine what The number of shares to be used in computing diluted earnings per share for the quarter is
First step is to calculate the amount assumed to be exercised
Exercised amount= 21,500*$10 / $11 avg
Exercised amount=$l215,000/11 avg
Exercised amount= 19,545
Second step is to calculate the Net
Net=21,500-19,545
Net= 1,955
Now let calculate The number of shares to be used in computing diluted earnings per share
Using this formula
Number of shares=Outstanding+Net
Let plug in the formula
Number of shares=150,000 +1,955
Number of shares= 151,955
*diluted eps=$8,618 /151,955
Therefore The number of shares to be used in computing diluted earnings per share for the quarter is: 151,955
